Is the pharmacists’ monopoly coming to an end?

Will individuals or legal entities that are not pharmacists soon be allowed to invest in retail pharmacies? In other words, is the pharmacists’ monopoly on opening retail pharmacies coming to an end? In any case, the Competition Council has just issued a series of recommendations to this effect. This scenario is modeled on the model of investment funds and non-medical businesspeople who have been allowed to invest directly in private clinics since the entry into force of Law No. 131-13 on the practice of medicine.
There are several reasons behind the slump experienced by many pharmacies. Among these is their high density relative to the number of inhabitants compared to similar countries. For example, there are currently 14,134 pharmacies in Morocco for a population of just over 36.82 million. This corresponds to a ratio of 1 pharmacy for every 2,605 inhabitants. This is twice the World Health Organization’s recommendation of one pharmacy per 5,000 inhabitants. Tunisia, for its part, has one pharmacy per 3,400 inhabitants.
In recent years, Morocco has seen a frenetic pace of new pharmacy openings. This growth is 6.5 times faster than the population growth rate. This represents 54% growth in nine years, as the Kingdom has gone from 9,185 pharmacies in 2015 to 14,134 in 2024. The proliferation of pharmacies raises several questions. Starting with their financial viability, which is undermined by their high density, the saturation of the sector, and competition between pharmacies. The Competition Council also points to inequality in terms of geographical distribution, with a high concentration in urban areas and a “pharmaceutical desert” in certain rural areas.
These are all reasons that have prompted the Council to advocate for a controlled opening of the pharmacy monopoly to facilitate new establishments and contribute to their modernization. The aim is to allow private investors to take majority or minority stakes in pharmacies and to enable the creation of pharmacy chains, as is the case in many countries.
In line with the provisions of Law No. 131-13 on the practice of medicine, the Competition Council recommends the establishment of safeguards to prevent abuses. In short, if a pharmacy chain belongs to a commercial company, it will be required to hire a pharmacist who will be responsible for managing the pharmacy and dispensing medicines.o

Hassan EL ARIF